“We see a new demographic for the reverse mortgage product increasing and growing as awareness about the product increases”
“I see three macro trends that I believe will create an increasing awareness and use of Reverse Mortgage products. First there are over 80 million boomers entering their retirement years. They will increasingly need sources of income streams. Secondly, the recent recession has resulted in a significant decline in their retirement portfolios and they are looking for alternative sources of capital to help alleviate their financial crunch,” said Larsen.
“We see a new demographic for the reverse mortgage product increasing and growing as awareness about the product increases,” said Larsen. “The third trend that will develop is the increased liquidity for privately labeled HMBS securities as investors seek alternative income derived products without the negative convexity that traditional MBS hold. This liquidity will enhance product development efforts and increase the product’s reach to borrowers that may not fit the current FHA HECM Borrower Profile,” said Larsen.
According to Reverse Mortgage Daily, Reverse Mortgage Origination Volume Grew to $30.2 Billion in 2009 which was an increase of 25% over the previous year. The majority of the volume was attributed to the lending limit increase. According to Reverse Market Insight, the industry acted as a key safety net for seniors and provided more funds to more consumers in 2009 than ever before.
“I am also encouraged by the Obama Administration requesting a $250 million in credit subsidy for the FHA’s reverse mortgage program along with a contingency appropriation to meet all program demand, even if demand exceeds projections,” said Larsen.
About Torrey Larsen
Torrey Larsen co-founded Security One Lending and is its Chief Executive Officer. Larsen is active in all aspects of the firm with his central focus on overall business growth and strategic direction. Torrey Larsen has a broad background in the areas of corporate finance, capital markets, and secondary marketing.
For more information on Security One Lending, call (866) 480-4715 or visit http://www.s1l.com/